Report for investors and ccFound fans for 1Q 2024
Dear investors and ccFound users!
I am publishing this report on the day of the issuance of our $FOUND token. We are starting with liquidity addition on PancakeSwap exchange today, on Wednesday, April 17, 2024, around 12:00 PM Polish time.
This is a significant moment for our platform. In the upcoming days and weeks, the market will determine the value of ccFound. We continue to work diligently towards the success of this community. We have many plans, and I will tell you about them in a moment. Let's start with a summary of "where we are."
Informationally: the original report was prepared in Polish. Automatic translations in other languages may contain minor errors.
Promotion and advertising
In the first quarter of 2024, ccFound had 1356 registered users, out of which 865 users confirmed their registration with a phone number, which is 64%.
Currently, we do not advertise the platform as such, as we believe that acquiring users in this way is not very effective in building a true, engaged community.
(If you have not read about the changes in our strategy and cooperation with Adrian Kołodziej, I will mention it below).
Therefore, the users mentioned were mainly acquired through organic methods. While there are few of them, their quality has increased, as indicated by the high account verification rate using a phone number.
It is worth noting that 795 new users have joined the platform based on recommendations from others, which also speaks well of the ccFound community.
There are currently 193 courses available on the platform, with 28 of them offered for free. This is already a significant number of educational resources that attract users with various interests. So far, 62 trainers have joined the platform.
The beginnings are always difficult - convincing an expert to operate on a platform where there is no one yet borders on a miracle. We are particularly grateful to Adrian Kołodziej, who recruited the first 30 experts for us a quarter ago, and as we see, in the following months, this number is not stagnant but increasing. We are slowly building momentum.
Financial results for the period from January to the end of March 2024 show that the total revenue from course sales in this period amounted to $749 (2996 PLN).
Of course, this is still a low number. It shows that we currently do not have very effective marketers on the platform. One, however, only began promoting his group in April, in the next quarter - beyond the scope of this report.
Additionally, I would like to inform you that a new educational project of the Cryptography Institute, namely Citadel, has also started on ccFound. In the marketplace, you can already find the first 6-hour masterclasses on topics related to personal protection and defense. The entire series refers to the difficult geopolitical situation and the threat of war. In June, a promotional campaign for Citadel will be held in the media of the Institute, which means an influx of new users to ccFound.
Returning to sales. We understand why the current results are so low. The first trainers recruited by us were tempted by the "full service" offer. We offered material transfer, promotion, support, and full service. Unfortunately, this created an expectation among experts that they do not have to do anything - they only give us their materials and wait for additional sales outside the websites they already have, where they focus on. Most of them have not fully transitioned to ccFound and continue to sell in other channels.
We decided to approach the issue completely differently. First of all, we understood that experts need to be taught how to operate and succeed on ccFound. We want to recruit people who will mainly operate with us, because ccFound costs them nothing and removes the obligation for experts to have numerous systems and websites. Novice experts who do not yet have their own sales systems, to which they have been accustomed for years and do not want to change, have an advantage. This is how our new strategy of recruiting and training experts was born.
The next step was to establish cooperation with Adrian Kołodziej, a teacher of experts who knows how to acquire them through advertising - and has been teaching them how to do business online for years. The next step is an alliance with the "Time Is Money" channel, which also teaches people how to earn on ccFound. Time Is Money does not strictly teach experts - it teaches earning money online. Cooperation with such teachers is a valuable discovery. This conclusion arises from the fact that many experts start a business just by asking "how to earn online." Observing this fact allows us to go to the market much broader than just through expert teachers.
It should be noted here the most important change in our strategy. We have moved away from the commission-based model in settlements with experts. Recall that ccFound was supposed to deduct 20% from the revenues generated by experts. We decided to make an offer to the market that cannot be refused and offer ccFound as a sales tool practically for free.
The expert only covers the cost of the payment system (currently 1%) and - in the near future - hosting and transferring heavy video files. Today, many experts pay much more for payment systems (around 3%), so even in terms of obvious costs that the expert must return to the platform, we win against the competition.
We hope that in the coming months, experts will enthusiastically join ccFound and start creating paid and free groups. By promoting them, they will acquire users for the entire ecosystem. Users, by writing content, will power our translation engine into 18 different languages. Content indexed on Google in several languages will attract a avalanche of new people to the ccFound platform. This is the essence of our current strategy.
In the first quarter of 2024, users gained access to 1111 courses, of which 58 were paid courses. At this moment, the total value of all products published on ccFound is $10,087 (40,050 PLN).
Altogether, from January to the end of March this year, 894 questions were asked. At the same time, the number of answers given, totaling 8624, shows the community's openness to sharing knowledge and willingness to discuss.
In total, there are 80 groups on the platform, with 11 of them being paid. The variety of thematic groups allows users to find a place where they can share interests, deepen knowledge, and make new contacts.
Paid groups can be particularly attractive to users seeking more advanced content or exclusive opportunities, including networking. We believe that paid communities are the future of education. The market has slightly moved away from selling knowledge in the form of strictly video recordings, and the trend is towards allowing people to ask questions and remain in constant and organic contact with an exclusive, closed community.
The total monthly cost of joining all paid groups on ccFound is currently $1004 (3987 PLN). The longest offered subscription period is an annual subscription, which would currently cost $8181 (32480 PLN) for access to all groups.
IT and token-related activities
We have focused extensively on SEO optimization, which has significantly increased the number of indexed pages in Google to almost 120,000.
We have enabled the creation of paid groups, including subscription-based ones, with automated billing.
Additionally, when creating paid groups or products, we have allowed the addition of the user's own Facebook pixel code for tracking sales conversions.
We have activated further translations of content into Italian, Dutch, German, Japanese, Indonesian, Portuguese, and Bengali.
We have implemented new profile settings and user profiles with additional information such as their products, knowledge of foreign languages, additional links, and skills.
We have redesigned the quick registration and login pop-up to be more user-friendly and to speed up the registration process.
We have written a new smart contract, which has passed a positive audit, and we have issued the $FOUND token on it.
We have prepared the platform for the TGE so that users can easily deposit and withdraw their tokens, as well as use them for staking.
We have launched two airdrop campaigns and have partnered with influencers to increase engagement on Profile X. These efforts have enabled us to reach over 150,000 impressions in the last 28 days.
Finance and taxes
At this moment, the company has savings of 2,830,000 PLN (approximately 690,000 USD). These funds should be sufficient to maintain the project until the end of 2024, but we are still awaiting a refund from the Tax Office - up to 1,366,000 PLN, or about 333,000 USD. The risk factor is whether and when these funds can be obtained.
As you may recall, we obtained a positive interpretation from the National Chamber of Tax Administration regarding the classification of our tokens as vouchers for various purposes. In connection with this interpretation, we have applied to the Tax Office for a refund of the amounts paid for VAT and CIT.
Currently, the Tax Office has requested a detailed explanation of the activities of each person cooperating with ccFOUND - attention - in each month of 2021, along with presenting documents to authenticate the collaboration. Additionally, we must explain in great detail how EVERY expense is related to revenue. This is a huge and detailed inquiry that should not have occurred. No normal company maintains such detailed documentation.
Naturally, the amount of work we must put in to explain these issues is absurdly high. Currently, 4 individuals from the administration department are working on the inquiry, with the support of lawyers and tax advisors.
The inspection is being conducted in a way that suggests that the Tax Office assumes that irregularities will be detected. Therefore, we are considering, depending on the time available, taking legal action (potential lawsuit) and media action (bringing attention to the matter).
Of course - we do not give up. We have put a lot of work into running the company in accordance with principles, which has set us apart in the blockchain startup community from the very beginning. This is also related to incurring additional costs for high standards, lawyers, and tax advisors. We will consistently clarify questionable issues to obtain refunds of due taxes, and any potential publicity of the matter - we hope - will contribute to the popularization of the platform.
Dear investors and ccFound users!
I am publishing this report on the day of the issuance of our $FOUND token. We are starting with liquidity addition on PancakeSwap exchange today, on Wednesday, April 17, 2024, around 12:00 PM Polish time.
This is a significant moment for our platform. In the upcoming days and weeks, the market will determine the value of ccFound. We continue to work diligently towards the success of this community. We have many plans, and I will tell you about them in a moment. Let's start with a summary of "where we are."
Informationally: the original report was prepared in Polish. Automatic translations in other languages may contain minor errors.
Promotion and advertising
In the first quarter of 2024, ccFound had 1356 registered users, out of which 865 users confirmed their registration with a phone number, which is 64%.
Currently, we do not advertise the platform as such, as we believe that acquiring users in this way is not very effective in building a true, engaged community.
(If you have not read about the changes in our strategy and cooperation with Adrian Kołodziej, I will mention it below).
Therefore, the users mentioned were mainly acquired through organic methods. While there are few of them, their quality has increased, as indicated by the high account verification rate using a phone number.
It is worth noting that 795 new users have joined the platform based on recommendations from others, which also speaks well of the ccFound community.
There are currently 193 courses available on the platform, with 28 of them offered for free. This is already a significant number of educational resources that attract users with various interests. So far, 62 trainers have joined the platform.
The beginnings are always difficult - convincing an expert to operate on a platform where there is no one yet borders on a miracle. We are particularly grateful to Adrian Kołodziej, who recruited the first 30 experts for us a quarter ago, and as we see, in the following months, this number is not stagnant but increasing. We are slowly building momentum.
Financial results for the period from January to the end of March 2024 show that the total revenue from course sales in this period amounted to $749 (2996 PLN).
Of course, this is still a low number. It shows that we currently do not have very effective marketers on the platform. One, however, only began promoting his group in April, in the next quarter - beyond the scope of this report.
Additionally, I would like to inform you that a new educational project of the Cryptography Institute, namely Citadel, has also started on ccFound. In the marketplace, you can already find the first 6-hour masterclasses on topics related to personal protection and defense. The entire series refers to the difficult geopolitical situation and the threat of war. In June, a promotional campaign for Citadel will be held in the media of the Institute, which means an influx of new users to ccFound.
Returning to sales. We understand why the current results are so low. The first trainers recruited by us were tempted by the "full service" offer. We offered material transfer, promotion, support, and full service. Unfortunately, this created an expectation among experts that they do not have to do anything - they only give us their materials and wait for additional sales outside the websites they already have, where they focus on. Most of them have not fully transitioned to ccFound and continue to sell in other channels.
We decided to approach the issue completely differently. First of all, we understood that experts need to be taught how to operate and succeed on ccFound. We want to recruit people who will mainly operate with us, because ccFound costs them nothing and removes the obligation for experts to have numerous systems and websites. Novice experts who do not yet have their own sales systems, to which they have been accustomed for years and do not want to change, have an advantage. This is how our new strategy of recruiting and training experts was born.
The next step was to establish cooperation with Adrian Kołodziej, a teacher of experts who knows how to acquire them through advertising - and has been teaching them how to do business online for years. The next step is an alliance with the "Time Is Money" channel, which also teaches people how to earn on ccFound. Time Is Money does not strictly teach experts - it teaches earning money online. Cooperation with such teachers is a valuable discovery. This conclusion arises from the fact that many experts start a business just by asking "how to earn online." Observing this fact allows us to go to the market much broader than just through expert teachers.
It should be noted here the most important change in our strategy. We have moved away from the commission-based model in settlements with experts. Recall that ccFound was supposed to deduct 20% from the revenues generated by experts. We decided to make an offer to the market that cannot be refused and offer ccFound as a sales tool practically for free.
The expert only covers the cost of the payment system (currently 1%) and - in the near future - hosting and transferring heavy video files. Today, many experts pay much more for payment systems (around 3%), so even in terms of obvious costs that the expert must return to the platform, we win against the competition.
We hope that in the coming months, experts will enthusiastically join ccFound and start creating paid and free groups. By promoting them, they will acquire users for the entire ecosystem. Users, by writing content, will power our translation engine into 18 different languages. Content indexed on Google in several languages will attract a avalanche of new people to the ccFound platform. This is the essence of our current strategy.
In the first quarter of 2024, users gained access to 1111 courses, of which 58 were paid courses. At this moment, the total value of all products published on ccFound is $10,087 (40,050 PLN).
Altogether, from January to the end of March this year, 894 questions were asked. At the same time, the number of answers given, totaling 8624, shows the community's openness to sharing knowledge and willingness to discuss.
In total, there are 80 groups on the platform, with 11 of them being paid. The variety of thematic groups allows users to find a place where they can share interests, deepen knowledge, and make new contacts.
Paid groups can be particularly attractive to users seeking more advanced content or exclusive opportunities, including networking. We believe that paid communities are the future of education. The market has slightly moved away from selling knowledge in the form of strictly video recordings, and the trend is towards allowing people to ask questions and remain in constant and organic contact with an exclusive, closed community.
The total monthly cost of joining all paid groups on ccFound is currently $1004 (3987 PLN). The longest offered subscription period is an annual subscription, which would currently cost $8181 (32480 PLN) for access to all groups.
IT and token-related activities
We have focused extensively on SEO optimization, which has significantly increased the number of indexed pages in Google to almost 120,000.
We have enabled the creation of paid groups, including subscription-based ones, with automated billing.
Additionally, when creating paid groups or products, we have allowed the addition of the user's own Facebook pixel code for tracking sales conversions.
We have activated further translations of content into Italian, Dutch, German, Japanese, Indonesian, Portuguese, and Bengali.
We have implemented new profile settings and user profiles with additional information such as their products, knowledge of foreign languages, additional links, and skills.
We have redesigned the quick registration and login pop-up to be more user-friendly and to speed up the registration process.
We have written a new smart contract, which has passed a positive audit, and we have issued the $FOUND token on it.
We have prepared the platform for the TGE so that users can easily deposit and withdraw their tokens, as well as use them for staking.
We have launched two airdrop campaigns and have partnered with influencers to increase engagement on Profile X. These efforts have enabled us to reach over 150,000 impressions in the last 28 days.
Finance and taxes
At this moment, the company has savings of 2,830,000 PLN (approximately 690,000 USD). These funds should be sufficient to maintain the project until the end of 2024, but we are still awaiting a refund from the Tax Office - up to 1,366,000 PLN, or about 333,000 USD. The risk factor is whether and when these funds can be obtained.
As you may recall, we obtained a positive interpretation from the National Chamber of Tax Administration regarding the classification of our tokens as vouchers for various purposes. In connection with this interpretation, we have applied to the Tax Office for a refund of the amounts paid for VAT and CIT.
Currently, the Tax Office has requested a detailed explanation of the activities of each person cooperating with ccFOUND - attention - in each month of 2021, along with presenting documents to authenticate the collaboration. Additionally, we must explain in great detail how EVERY expense is related to revenue. This is a huge and detailed inquiry that should not have occurred. No normal company maintains such detailed documentation.
Naturally, the amount of work we must put in to explain these issues is absurdly high. Currently, 4 individuals from the administration department are working on the inquiry, with the support of lawyers and tax advisors.
The inspection is being conducted in a way that suggests that the Tax Office assumes that irregularities will be detected. Therefore, we are considering, depending on the time available, taking legal action (potential lawsuit) and media action (bringing attention to the matter).
Of course - we do not give up. We have put a lot of work into running the company in accordance with principles, which has set us apart in the blockchain startup community from the very beginning. This is also related to incurring additional costs for high standards, lawyers, and tax advisors. We will consistently clarify questionable issues to obtain refunds of due taxes, and any potential publicity of the matter - we hope - will contribute to the popularization of the platform.
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